. The UK’s strong labor market is loosening its resilience as firms slow down their hiring process amid bleak economic prospects.
BoE Governor Andrew Bailey commented last week that the central bank will keep interest rates “sufficiently restrictive for a sufficient period” in order that inflation returns swiftly to 2%. UK firms slowed down permanent staff hiring last month by the most since mid-2020 due to rising concerns about the economic outlook, per a survey by the Recruitment & Employment Confederation and KPMG, Reuters reported.
The US Dollar Index climbs above 102.00 as Federal Reserve policymakers still hope that more interest rate hikes will bring inflation to 2%. The monthly labor cost index maintained a pace of 0.4% as recorded in June, while investors anticipated a decline in the economic data to 0.3%. Annualized labor cost index also remained stable at 4.4% against expectations of 4.2%.Pound Sterling faces strong selling pressure in an attempt to test the crucial resistance of 1.2800.
NFPs influence the US Dollar by virtue of their impact on inflation, monetary policy expectations and interest rates. A higher NFP usually means the Federal Reserve will be more tight in its monetary policy, supporting the USD.Nonfarm Payrolls are generally negatively-correlated with the price of Gold. This means a higher-than-expected payrolls’ figure will have a depressing effect on the Gold price and vice versa.